0
Well, one major difference is that IFRS's do not allow the use of LIFO for accounting for inventory. Many US companies use the LIFO method as a way to lower corporate taxes.
The way to adjust inventory is different as well. In US GAAP the the revaluation amount is calculated by using the ceiling, floor and replacment cost. In IFRS the net present value is used and is calculated by subtracting the amount of selling costs from the selling price.
What else can I help you with?
Is accrual accounting GAAP or IFRS?
IFRS
How many international accounting standards are there?
Typically, every country can have their own set of accounting standards used for private enterprises. However, the three major accounting standards recognized globally are US GAAP, Canadian GAAP (although Canada is switching to IFRS effective January 1st, 2011), and IFRS (which is used by most countries in the world now, excluding USA, which uses US GAAP). *GAAP = Generally Accepted Accounting Principles **IFRS = International Financial Reporting Standards
Should deprciation should be charged on idle assets?
Under all of US GAAP, CDN GAAP and IFRS, idle assets should continue to be depreciated.
How many multinationals use us gaap?
The exact number keeps changing but i can tell you that the IFRS and IAS are made so as to be in line with US GAAP. So, any country following them will definitely be in line with US GAAP.
Does a nonprofit have to follow GAAP?
Yes. IN the US non profits are expected to follow GAAP accounting rules. In Europe and expanding to most other parts of the developed world, companies are using IFRS.
Is accrual accounting GAAP or IFRS?
IFRS
What is the difference between GAAP costing and IFRS costing?
There are several costing items that has change in the adoption of IFRS, for in GAAP the stock valuation or material pricing adopted is LIFO and FIFO but in IFRS only FIFO is adopted etc
How many international accounting standards are there?
Typically, every country can have their own set of accounting standards used for private enterprises. However, the three major accounting standards recognized globally are US GAAP, Canadian GAAP (although Canada is switching to IFRS effective January 1st, 2011), and IFRS (which is used by most countries in the world now, excluding USA, which uses US GAAP). *GAAP = Generally Accepted Accounting Principles **IFRS = International Financial Reporting Standards
Should deprciation should be charged on idle assets?
Under all of US GAAP, CDN GAAP and IFRS, idle assets should continue to be depreciated.
How many multinationals use us gaap?
The exact number keeps changing but i can tell you that the IFRS and IAS are made so as to be in line with US GAAP. So, any country following them will definitely be in line with US GAAP.
What is the XBRL term for sales and for gross profit?
It depends which GAAP you are referring to. The answer would be different for US GAAP, Canadian GAAP or IFRS. If you mean US GAAP, you can look it up at http://xbrl.us/Pages/US-GAAP.aspx - the answer(s) would probably be SalesRevenueNet and GrossProfit, respectively.
Does a nonprofit have to follow GAAP?
Yes. IN the US non profits are expected to follow GAAP accounting rules. In Europe and expanding to most other parts of the developed world, companies are using IFRS.
Treatment of other-than-temporary impairment for equity investment versus equity securities?
It depends whether IFRS or GAAP
What is the difference between US and UK accounting standared?
The primary difference between US and UK accounting standards lies in the frameworks they follow: the US adheres to Generally Accepted Accounting Principles (GAAP), while the UK follows International Financial Reporting Standards (IFRS). GAAP is more rules-based, providing specific guidelines for various situations, whereas IFRS is principles-based, allowing for greater interpretation and flexibility. Additionally, there are differences in revenue recognition, lease accounting, and financial statement presentation between the two systems. These distinctions can affect how financial performance and position are reported and understood by stakeholders.
What are the problems with gaap and ifrs convergence?
The convergence of GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) faces several challenges, including differences in regulatory environments and cultural approaches to accounting. Divergent recognition and measurement criteria can complicate harmonization, leading to inconsistencies in financial reporting. Additionally, the varying levels of acceptance and adoption among countries hinder a unified global framework. These issues create complexities for multinational corporations and may lead to increased compliance costs.
What are the differences of commercial accounting and GAAP?
commercial accounting is good and GAAP stands for "gay and am proud", so i would be careful if your going to join
What are the disadvantage of ifrs?
One disadvantage of International Financial Reporting Standards (IFRS) is that they can be complex and require significant training for accountants and financial professionals to fully understand and implement. Additionally, the flexibility inherent in IFRS allows for varying interpretations, which can lead to inconsistencies in financial reporting across different companies and jurisdictions. This can make it difficult for investors to compare financial statements effectively. Lastly, transitioning to IFRS can be costly and time-consuming for organizations, particularly those accustomed to local GAAP standards.
